FINANCIAL SERVICES INDUSTRY – AUSTRALIA

Wilson warns on rotten AMP

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Original article by Sarah Turner
The Australian Financial Review – Page: 13 & 26 : 16-May-18

Fund manager Geoff Wilson says former AMP employees have told him that its financial planning division is completely "rotten" and the banking royal commission’s revelations of misconduct are just the beginning. Wilson says the scandals at AMP have made it difficult to value the stock, and there may not be a price at which it constitutes a "buy". There is speculation that the royal commission may result in stricter regulation of the financial services sector, but Antipodes Partners’ Graham Hay cautions against any action that may actually reduce competition.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, ANTIPODES PARTNERS

Fourth bid for AMP class action

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Original article by Ben Butler
The Australian – Page: 19 : 15-May-18

Maurice Blackburn is the latest law firm to propose launching a class action against wealth manager AMP in response to the scandals exposed by the banking royal commission. Phi Finney McDonald and Quinn Emanuel Urquhart & Sullivan have filed class action lawsuits to date, while Slater & Gordon has also flagged possible legal action on behalf of AMP shareholders. Andrew Watson of Maurice Blackburn stresses factors other than the lowest commission rate will determine which class action is allowed to proceed.

CORPORATES
AMP LIMITED – ASX AMP, MAURICE BLACKBURN PTY LTD, PHI FINNEY MCDONALD PTY LTD, QUINN EMANUEL URQUHART AND SULLIVAN LP, SLATER AND GORDON LIMITED – ASX SGH, INTERNATIONAL LITIGATION FUNDING PARTNERS INCORPORATED, FEDERAL COURT OF AUSTRALIA, SUPREME COURT OF NEW SOUTH WALES, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MACQUARIE GROUP LIMITED – ASX MQG, IMF BENTHAM LIMITED – ASX IMF

Fears of big job losses from inquiry fallout

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Original article by Michael Roddan
The Australian – Page: 20 : 15-May-18

Automation has already put around 50,000 financial services jobs at risk, and job losses in the sector may increase in the wake of the banking royal commission. Sally Auld of JPMorgan says the loss of jobs as a result of the inquiry could be greater than those shed during the last financial crisis. Tommy Wu of IBISWorld notes that the banking sector’s revenue has fallen by over $A10 billion in the last five years, and it could fall even further as a result of the royal commission.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, JP MORGAN AUSTRALIA LIMITED, IBISWORLD PTY LTD, AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, UBS HOLDINGS PTY LTD, RICE WARNER ACTUARIES PTY LTD, MOODY’S INVESTORS SERVICE INCORPORATED, MACQUARIE GROUP LIMITED – ASX MQG

Bank scandals to impact all business: BHP

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 14-May-18

BHP CEO Andrew Mackenzie warns that the banking royal commission’s revelations about misconduct in the financial sector have implications for the broader business community. He says other companies will have to be more transparent and accountable, particularly with regard to remuneration. A survey has found that BHP’s reputation has risen strongly in the wake of a marketing campaign and rebranding in 2017. BHP and Rio Tinto have had their own scandals in recent years, including corruption investigations and tax disputes.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, RIO TINTO LIMITED – ASX RIO, SAMARCO MINERACAO SA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Wilkins sorry as first strike pounds AMP

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Original article by Richard Gluyas
The Australian – Page: 19 & 23 : 11-May-18

AMP incurred a backlash from investors at its annual meeting on 10 May, with 61.5 per cent of votes cast rejecting its remuneration report. The financial services group could face a board spill in 2019 under the "two-strikes" regime. AMP director Andrew Harmos has retained his seat on the board, although 37.5 per cent of votes cast were opposed to his re-election. Meanwhile, acting executive chairman Mike Wilkins has apologised to shareholders for the "fees-for-no-service" scandal, and acknowledged that rebuilding trust and confidence in the AMP brand will take time.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, CLAYTON UTZ, AMP CAPITAL INVESTORS LIMITED, FEDERAL COURT OF AUSTRALIA, SUPREME COURT OF NEW SOUTH WALES

AMP faces $2b class action

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Original article by Misa Han
The Australian Financial Review – Page: 23 : 10-May-18

AMP has declined to comment on a move by law firm Quinn Emanuel to launch a class action against the embattled financial services group. The class action is open to investors who bought AMP shares between 4 May 2013 and 18 April 2018. Several other law firms may also pursue class actions against AMP following the banking royal commission’s revelations that the group had charged fees for services that were not provided and had lied to the Australian Securities & Investments Commission.

CORPORATES
AMP LIMITED – ASX AMP, QUINN EMANUEL URQUHART AND SULLIVAN LP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, SLATER AND GORDON LIMITED – ASX SGH, PHI FINNEY McDONALD PTY LTD, SHINE LAWYERS

AMP reeling as more pull pin

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Original article by Richard Gluyas
The Australian – Page: 1 & 16 : 9-May-18

Holly Kramer, Van­essa Wallace and Patty Akopiantz have resigned as directors of AMP in the wake of revelations that it charged fees for services that clients did not receive. Kramer and Wallace were seeking re-election at AMP’s AGM on 10 May, and sources within the financial services group have suggested that they were unlikely to gain another term on the board. Akopiantz is not standing for re-election, but she has agreed to step down at the end of 2018. Andrew Harmos is tipped to be re-elected at the AGM, although he is likely to face a backlash from investors.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, WOOLWORTHS GROUP LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, SEEK LIMITED – ASX SEK, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED

AMP rebuffed Mohl in choosing Brenner to fill chair

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Original article by Karen Maley
The Australian Financial Review – Page: 1 & 8 : 3-May-18

It has been revealed that AMP’s former CEO Andrew Mohl had approached acting chairman John Palmer about taking on the role of chairman following the sudden resignation of Simon McKeon in 2016. However, AMP’s board chose to appoint Catherine Brenner as chairman, and it did not even consider Mohl for the role. Brenner subsequently resigned in the wake of the banking royal commission’s revelations about misconduct at the financial services group.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AXA ASIA PACIFIC HOLDINGS LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, EGON ZEHNDER INTERNATIONAL, CLAYTON UTZ, BEST AND LESS PTY LTD

Call for clean-out of AMP board

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Original article by Andrew White
The Australian – Page: 17 & 21 : 1-May-18

Institutional investors say further boardroom changes are needed at AMP following the resignation of chair Catherine Brenner in the wake of the banking royal commission’s revelations. First Super CEO Bill Watson still intends to vote against the election of three directors at the upcoming AGM, arguing that AMP directors must be held accountable. Australian Council of Superannuation Investors CEO Louise Davidson says AMP should also look at stripping bonuses from executives who were involved in the fees-for-no-service scandal. AMP has appointed Mike Wilkins as executive chairman.

CORPORATES
AMP LIMITED – ASX AMP, FIRST SUPER PTY LTD, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ART GALLERY OF NEW SOUTH WALES, BORAL LIMITED – ASX BLD, COCA-COLA AMATIL LIMITED – ASX CCL, CLAYTON UTZ, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, IMF BENTHAM LIMITED – ASX IMF, PHI FINNEY McDONALD, SHINE LAWYERS, SLATER AND GORDON LIMITED – ASX SGH, QUINN EMANUEL URQUHART AND SULLIVAN LP

AMP chair to be Hayne’s biggest scalp

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Original article by Jennifer Hewett, Alice Uribe
The Australian Financial Review – Page: 1 & 19 : 30-Apr-18

Institutional investors have warned that they will vote against the re-election of three AMP directors at the upcoming AGM, even if chairman Catherine Brenner resigns. She is widely tipped to step down in the wake of a board meeting on 29 April. CEO Craig Meller recently resigned after misconduct at AMP was exposed by the banking royal commission. The revelations have weighed on AMP’s share price, which has fallen to its lowest level in more than five years.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FIRST SUPER PTY LTD, LGSS PTY LTD, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, REST SUPER PTY LTD, HOST-PLUS, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, CGI GLASS LEWIS PTY LTD, BELL POTTER SECURITIES LIMITED, COCA-COLA AMATIL LIMITED – ASX CCL, BORAL LIMITED – ASX BLD, BRAMBLES LIMITED – ASX BXB